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RBI Buys Half a Tonne Gold in Last Week of June | Current Affairs | Vision IAS

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RBI Buys Half a Tonne Gold in Last Week of June

2 min read

Reserve Bank of India's Gold Purchases

The Reserve Bank of India (RBI) increased its gold reserves by purchasing nearly half a tonne of gold in the last week of June, marking a significant acquisition after a period of conservative gold buying.

Gold Reserves 

  • Current Gold Reserves: As of June 27, the RBI's total gold reserves stood at 879.8 tonnes.

Trends in Gold as a Foreign Exchange Reserve

  • Growth: Gold is one of the fastest-growing segments of India's foreign exchange reserves, with its value rising over 80% in the last five years.
  • Share in Reserves: Gold's share in India's foreign exchange reserves increased to 12.1% by July 18, 2025, from 8.9% on July 19, 2024.

Global and National Context

  • Institutional Backing: Gold acts as a natural hedge against inflation and has gained significant institutional support.
  • World Gold Council (WGC) Data: Central bank gold purchases have exceeded 1,000 tonnes annually over the past three years, much higher than usual.
  • Investment Strategy: The RBI prioritizes safety and liquidity in reserve management, while also considering return optimization.

Gold Returns

  • High Returns: Gold returns in the first half of the calendar year were 26%, one of the highest for India, only surpassed by Turkey's returns exceeding 40%.
  • Comparison with Other Currencies: Gold returns in India outperformed those of advanced market currencies such as the pound, yen, euro, and the Chinese renminbi.
  • Tags :
  • Gold
  • Foreign Exchange Reserve
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